Spot Gold Technical Analysis: May Retest the 4,580 USD Support Level in the Short Term

1. From a technical perspective, spot gold may face downward pressure for a correction after its short-term rebound, with the target pointing to the support level at $4,580 per ounce. The current gold price is forming a short-term downtrend within a descending channel, which started near $4,696.2. In terms of wave structure, this correction may take the form of a complex double zigzag pattern, consisting of a total of seven waves. The rebound seen near the $4,580 support level is driven by the intermediate x-wave and is part of the corrective structure.3. If the gold price breaks above $4,645, the current wave count will be revised. This breakthrough not only suggests that the price may rise further into the $4,681 to $4,707 range, but also indicates the original descending channel has been broken, offering hope for a resumption of the upward trend.4. The daily chart shows that between August 24 and 26, the gold price formed an evening star bearish pattern near the $4,666 resistance level. This resistance corresponds to the 76.4% Fibonacci retracement from the $4,889 high to the $3,943 low during the downward trend.5. This bearish reversal pattern implies a risk of the gold price falling towards the $4,530 support level. Considering that there was no sufficient technical correction after the market broke above the descending trendline, the probability of a downward test of $4,530 is increasing.